Impact of Financial Losses for GM Auto Manufacturers Essay

Impact of Financial Losses for GM Auto Manufacturers - see ExampleBy mid-century, the railroad carmobile was a necessity in every U. S. household, and GM led the mien with Ford and Chrysler close behind. The Big Three controlled the industry from Detroit, Michigan. According to Wikipedia, the period from 1960-1985 was perhaps the greatest in GMs history, as it leveltually held slightly over 50% of the U.S. Market (General Motors, 2006, 2.3). At the time, it was all about status, having the or so popular brand. Unfortunately, in the mid 1990s, a d possessward spiral began, which has yet to be resolved for American car makers. It could have been predicted in 1984 when a joint venture between GM and Toyota gave Toyota an opportunity to wee a base in the United States and avoid newly established tariff on conflicting pick-up trucks. Toyotas growth has accelerated ever since, with a $4.1 billion dollar bill gain in 2005 compared with GMs $10.6 billion dollar loss ( Solman, 2006). In a recent PBS interview, GM CEO Rich Wagoner remark that restructuring is taking place in the company in an effort to fight in the global auto industry and global economy (Solman, 2006, par. 12). He claims that the company is launching new products, and accelerating the application of biofuels E85. Wagoner as well mentions a breakthrough health take deal with United Auto Workers (UAW) and the major restructuring of GMAC. With attrition and base closings, he is optimistic that the company will be more streamlined and better able to compete globally. What sounds like positive action, however, definitely has its down side, with employees about to be faced with increased co-pay for health care and pharmacy and heavy job losses as plants close down. The companys failure to foresee drop in demand for gas-guzzling SUVs, slow entry into hybrid trade and Toyotas reputation for high quality puts them behind in the race for market share (Kellar, 2006, par. 2).Micheline Maynard, Detroit bureau chief for The New York Times, claims in her book, The End of Detroit (2003) that by center on high-profit light trucks, American automakers, including General Motors, turned its back on people wanting to own cars rather than trucks and opened the door to Toyota, Honda and Hyundai. Consumers retaliated by turning their backs on trucks and purchasing foreign-brand cars. General Motors obviously does not look beyond present trends to what the future might bring. Krolickis Reuters article (2006) is only one of several tidings stories (Wall Street Journal, Bloomberg, CNW) reporting the bankruptcy of Delphi, one of GMs most important suppliers, which, along with GMAC filing errors, brought about even more losses in 2005 than had been previously noted. In keeping with General Motors short-term goals to increase market share, Associated Press writer Dee-Ann Durbin recently announced the companys gas-price